© Ubaid Parkar, 9 August 2012
|The Nuerburg castle at the Nurburgring © AP Photo/ Roberto Pfeil
The European Commission has upped its investigation into the financial measures taken for the Nurburgring which sought to assist the German circuit to steer clear of insolvency.
Host to the German Grand Prix, the Nurburgring was given an aid in May this year, to avoid liquidation of the company Nuerburgring GmbH that owns and runs it
In a statement issued on Wednesday, the Commission expressed doubts that the aid was “granted on market terms” pointing out that it would have provided the facility - which includes a leisure park - an undue economic advantage over its competitors.
"The measures consist of a rescheduling of interest payments on previously awarded loans, a subordination of claims and, possibly, an additional shareholder's loan in order to keep the companies in business for six months," read the statement.
The investigation began in March this year under EU state aid rules, which is also ascertaining whether the circuit received a financial push twice within a decade, as according to norms "rescue or restructuring aid to a company in financial difficulties may be granted to a given company only once in a period of 10 years".
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